OPFI vs. SOFI: Which Fintech Credit Stock Is the Better Buy Right Now?

Core Insights - Both OppFi Inc. (OPFI) and SoFi Technologies (SOFI) are positioned in the fintech lending sector, with OPFI focusing on underserved non-prime customers and SOFI targeting mass-market consumers [1] Group 1: OppFi Inc. (OPFI) - OPFI's niche strategy for non-prime customers allows it to tap into a fintech market projected to grow at a CAGR of 15.3% from 2025 to 2030 [2] - In Q2 2025, OPFI reported a 12.8% year-over-year revenue growth and a 13.8% increase in net originations, with an improved loan auto approval rate of 80% [3] - Management forecasts full-year revenues between $578 million and $605 million, up from a previous estimate of $563 million to $594 million, and expects adjusted net income to rise to $125-$130 million from $106-$113 million [4] - OPFI's forward P/E ratio is 6.93, significantly lower than its 12-month median of 8.52, indicating a cheaper valuation compared to SOFI [14] Group 2: SoFi Technologies (SOFI) - SOFI added 850,000 members in Q2 2025, bringing total membership to 11.7 million, a 34% year-over-year increase [6] - The company achieved a 34% year-over-year growth in product adoption, with 35% of new products taken up by existing members, indicating effective customer engagement [7] - SOFI's annualized fee-based revenues exceeded $1.5 billion, and its adjusted EBITDA margin expanded by 600 basis points, showcasing improved profitability [8] - SOFI's forward P/E ratio stands at 54.82, higher than its median of 50.59, reflecting a premium valuation compared to OPFI [14] Group 3: Comparative Analysis - OPFI's estimated sales and EPS for 2025 indicate year-over-year growth of 12% and 49.5%, respectively, with no recent changes in analyst estimates [12] - SOFI's 2025 sales and EPS estimates show year-over-year increases of 32.3% and 113.3%, with three upward revisions in the past 60 days [13] - Both companies exhibit strong growth narratives, but OPFI's risk management and optimistic guidance enhance investor confidence, making it a potentially more attractive investment due to its lower valuation [16]